Stock Analysis on Net
Stock Analysis on Net

General Motors Co. (NYSE:GM)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

General Motors Co., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Goodwill 1,921 1,911 1,914 1,910 1,859
Technology and intellectual property 749 767 764 762 734
Brands 4,293 4,294 4,296 4,300 4,298
Dealer network, customer relationships and other 968 960 966 981 966
Intangible assets, gross carrying amount 6,010 6,021 6,026 6,043 5,998
Accumulated amortization (3,069) (2,987) (2,853) (2,723) (2,520)
Intangible assets, net carrying amount 2,941 3,034 3,173 3,320 3,478
Goodwill and intangible assets, net 4,862 4,945 5,087 5,230 5,337

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. General Motors Co. goodwill decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Intangible assets, net carrying amount Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. General Motors Co. intangible assets, net carrying amount decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and intangible assets, net Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. General Motors Co. goodwill and intangible assets, net decreased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Goodwill

General Motors Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 273,064 264,037 244,718 235,194 228,037
Less: Goodwill 1,921 1,911 1,914 1,910 1,859
Total assets (adjusted) 271,143 262,126 242,804 233,284 226,178
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 64,286 67,792 59,744 45,030 41,792
Less: Goodwill 1,921 1,911 1,914 1,910 1,859
Stockholders’ equity (adjusted) 62,365 65,881 57,830 43,120 39,933

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

General Motors Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

General Motors Co., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover
Reported total asset turnover 0.58 0.55 0.46 0.46 0.54
Adjusted total asset turnover 0.58 0.55 0.47 0.47 0.54
Financial Leverage
Reported financial leverage 4.25 3.89 4.10 5.22 5.46
Adjusted financial leverage 4.35 3.98 4.20 5.41 5.66
Return on Equity (ROE)
Reported ROE 15.75% 14.65% 16.77% 14.27% 16.11%
Adjusted ROE 16.24% 15.08% 17.32% 14.90% 16.86%
Return on Assets (ROA)
Reported ROA 3.71% 3.76% 4.09% 2.73% 2.95%
Adjusted ROA 3.73% 3.79% 4.13% 2.76% 2.98%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Motors Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 General Motors Co. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. General Motors Co. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. General Motors Co. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

General Motors Co., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Automotive net sales and revenue 157,658 143,975 113,590 108,673 122,697
Total assets 273,064 264,037 244,718 235,194 228,037
Activity Ratio
Total asset turnover1 0.58 0.55 0.46 0.46 0.54
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Automotive net sales and revenue 157,658 143,975 113,590 108,673 122,697
Adjusted total assets 271,143 262,126 242,804 233,284 226,178
Activity Ratio
Adjusted total asset turnover2 0.58 0.55 0.47 0.47 0.54

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Automotive net sales and revenue ÷ Total assets
= 157,658 ÷ 273,064 = 0.58

2 Adjusted total asset turnover = Automotive net sales and revenue ÷ Adjusted total assets
= 157,658 ÷ 271,143 = 0.58

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Motors Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 273,064 264,037 244,718 235,194 228,037
Stockholders’ equity 64,286 67,792 59,744 45,030 41,792
Solvency Ratio
Financial leverage1 4.25 3.89 4.10 5.22 5.46
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 271,143 262,126 242,804 233,284 226,178
Adjusted stockholders’ equity 62,365 65,881 57,830 43,120 39,933
Solvency Ratio
Adjusted financial leverage2 4.35 3.98 4.20 5.41 5.66

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 273,064 ÷ 64,286 = 4.25

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 271,143 ÷ 62,365 = 4.35

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 General Motors Co. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to stockholders 10,127 9,934 10,019 6,427 6,732
Stockholders’ equity 64,286 67,792 59,744 45,030 41,792
Profitability Ratio
ROE1 15.75% 14.65% 16.77% 14.27% 16.11%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to stockholders 10,127 9,934 10,019 6,427 6,732
Adjusted stockholders’ equity 62,365 65,881 57,830 43,120 39,933
Profitability Ratio
Adjusted ROE2 16.24% 15.08% 17.32% 14.90% 16.86%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income attributable to stockholders ÷ Stockholders’ equity
= 100 × 10,127 ÷ 64,286 = 15.75%

2 Adjusted ROE = 100 × Net income attributable to stockholders ÷ Adjusted stockholders’ equity
= 100 × 10,127 ÷ 62,365 = 16.24%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. General Motors Co. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to stockholders 10,127 9,934 10,019 6,427 6,732
Total assets 273,064 264,037 244,718 235,194 228,037
Profitability Ratio
ROA1 3.71% 3.76% 4.09% 2.73% 2.95%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to stockholders 10,127 9,934 10,019 6,427 6,732
Adjusted total assets 271,143 262,126 242,804 233,284 226,178
Profitability Ratio
Adjusted ROA2 3.73% 3.79% 4.13% 2.76% 2.98%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income attributable to stockholders ÷ Total assets
= 100 × 10,127 ÷ 273,064 = 3.71%

2 Adjusted ROA = 100 × Net income attributable to stockholders ÷ Adjusted total assets
= 100 × 10,127 ÷ 271,143 = 3.73%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. General Motors Co. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.